ISLAMABAD: The Power Division of the Ministry of Energy has denied reports of cancellation of the 4,500 MW power generation project of Diamer Bhasha Dam. The ministry said that the power-generating component of the dam is still included in the government’s plans.
The Power Division issued a clarification on social media platform X on Saturday, saying that the generation component of Diamer Bhasha Dam is a key project included in the current and future Indicative Generation Capacity Expansion Plan (IGCEP). The ministry termed the report, to the contrary, as false.
The clarification came after a report claimed that the government had cancelled or postponed the power-generating component of the dam for an indefinite period. The report, citing an alleged official document and a source, said that the country’s surplus power generation capacity, changes in electricity demand and other factors were the reasons for the decision.
The report also claimed that the dam should be completed first for water storage while the power generation system should be built later. However, the Power Division denied these claims, saying that it is not right to link the project with independent power generation companies.
The ministry further said that the business model of new independent power generation projects has been permanently closed during the current government. Therefore, there is no basis to link the alleged lobbying of IPPs with the Diamer-Bhasha Dam power project.
Available official information also indicates that the Diamer-Bhasha Dam is a multipurpose project. According to WAPDA, the dam will have a total storage capacity of 8.1 million acre feet while its installed power generation capacity is 4,500 megawatts. The project is also targeted to generate about 18,097 gigawatt-hours of electricity annually.
WAPDA’s recent progress also shows that construction work on the project is underway. According to the agency, the important phase of installing a cable over 1,500 meters long for the main cable crane at the dam site has been completed.
In March 2026, WAPDA’s Dams Committee also reviewed the progress of the construction of Diamer Bhasha Dam, land acquisition and resettlement of the affected people. WAPDA had described the project as crucial for Pakistan’s water, food and energy needs.
Thus, according to the latest official position, the 4,500 MW power generating part of Diamer Bhasha Dam has not been completed. However, the final progress regarding the construction of the project, financial requirements and future power demand will have to be seen in the light of official planning and upcoming IGCEP documents.
